CLUB TREASURER S MANUAL

Transcription

1 CLUB TREASURER S MANUAL A part of the Club Officers Kit 220-EN (512)

2 NEW INVOICE PROCESS AFFECTS ALL CLUBS What s changing? Your dues invoice will take a new form beginning in January. You will now receive a simple, one-page invoice. Rotary will calculate your balance based on the membership information your club has submitted to RI no later than 1 January. You no longer need to make calculations or adjustments just make sure your member list is current no later than 1 January. Once your invoice is generated, adjustments to the balance can no longer be made. What parts of my manual should I disregard? Because club invoices are changing, some important information in your training manuals is no longer correct. The necessary updates are summarized below. NO LONGER CORRECT Club Secretary s Manual: Semiannual Report section, including Termination and Reinstatement on pages Club Treasurer s Manual: Semiannual Report section on page 6 The sample semiannual dues invoice on page 7 Termination and Reinstatement section on page 8 Club President s Manual: Semiannual Report section on page 40 Termination and Reinstatement section on pages NEW INFORMATION Club invoice What was called the Semiannual Report (SAR) packet is now called the club invoice and will be only one page. Your club invoice will be sent twice a year, no later than mid-july and mid-january. The balance on your invoice will reflect your club s membership list in RI s database on 1 January and 1 July. There is no longer a worksheet or any need to make calculations. The invoice balance is due in full, and the amount cannot be changed. SEPTEMBER 2014

3 Termination and reinstatement Clubs with unpaid RI dues will be terminated 4 months after the 1 July and 1 January invoice dates instead of 6 months after. Clubs can be reinstated within 150 days after termination instead of 365 days. To reinstate, a club must pay its accrued balance in full, including a reinstatement fee of $30 per member instead of $10 (penalty fee) or $15 (re-charter fee). Member reporting General The club secretary is responsible for updating membership information. Add new members information within 30 days. Remove terminated members from your list within 30 days. All updates must be submitted no later than 1 January or 1 July to ensure that the invoice balance reflects actual membership. If you send your membership changes by fax or mail or use Member Data Integration, they must be received before the deadlines of 1 July and 1 January. Clubs that participate in the data integration initiative must follow the steps above within their own local databases. Replace all references to Member Access with My Rotary. Club secretaries must also report incoming club officers by 1 February. How do I update my club s member list and pay dues online? Club secretaries, presidents, treasurers, membership chairs, Foundation chairs, and executive secretaries can edit membership lists by signing in to My Rotary. If you don t have an account, create one today. Once you sign in, go to the Manage section, and then to Club Administration. There you can add, edit, or remove a member s information and pay your invoice balance. What if I don t use My Rotary to report membership changes? If your club uses Member Data Integration, you can update membership information through your software provider or local database. Or you can complete the Member Data Form and it to data@rotary.org. Where can I find more information? Your main source for up-to-date information about your club invoice is the Club Invoice page of Rotary.org. questions to clubinvoice@rotary.org or to your Club and District Support or Financial representative. SEPTEMBER 2014

4 Contents Introduction 1 Role and Responsibilities...2 Managing Funds...3 Collecting and Submitting Dues and Fees...4 Reporting on the State of Your Club s Finances...9 Working with The Rotary Foundation...9 Developing a Budget...12 Preparing Your Successor...12 Resources Financial Practices...14 Risk Management...14 Financial Controls...15 Appendixes 1: Best Practices Checklist for Club Treasurers : Sample Budget : Sample Board Report : Discussion Questions for the District Assembly...23 District Assembly Worksheets...24 This is the 2012 edition of the Club Treasurer s Manual (220). It is intended for use by club treasurers holding office in , , and The information contained in this publication is based on the Constitution and Bylaws of Rotary International, the Standard Rotary Club Constitution, the Rotary Code of Policies, and The Rotary Foundation Code of Policies. Please refer to those resources for exact guidelines. Changes to these documents by the triennial Council on Legislation, the RI Board of Directors, or The Rotary Foundation Board of Trustees override policy as stated in this publication. Photos: Alyce Henson and Monika Lozinska-Lee

5 Introduction The Club Treasurer s Manual was developed to support Rotary club treasurers worldwide. Because treasurers individual responsibilities vary according to local laws, cultural practices, and established club procedures, you should adapt the suggestions in this publication to your club s needs. General tips are offered throughout the manual. You should use this manual to prepare for your term in office. Bring it to the district assembly, and review its contents beforehand. Pay particular attention to the questions in appendix 4, which will help you get the most out of the facilitated discussions at the meeting. After you have completed your training, this publication will serve as a resource during your year as club treasurer. Your club is a member of Rotary International. Through this membership, it is linked to the 34,000 Rotary clubs worldwide and granted access to the organization s services and resources, including publications in nine languages, information at grants from The Rotary Foundation, and staff support at RI World Headquarters and the international offices. Comments? For questions about your role as club treasurer, contact your assistant governor, district finance committee, or RI financial or Club and District Support representative. Direct comments or questions about this manual to: Leadership Education and Training Division Rotary International One Rotary Center 1560 Sherman Avenue Evanston, IL USA learn@rotary.org Phone: Fax: Club Treasurer s Manual 1 INTRODUCTION

6 1 Role and Responsibilities On 1 July, you officially take office as club treasurer. Your experience in office will depend on your club s size and activity, and your familiarity with Rotary and your new responsibilities. Your responsibilities as club treasurer include: Managing funds Collecting and submitting dues and fees Reporting on the state of your club s finances Working with The Rotary Foundation Developing a budget Preparing your successor To prepare for your term, learn what will be expected of you by the club s board of directors and members, your district, and Rotary International. It is recommended that you assist the outgoing club treasurer before taking office to enable you to better understand your role. Ask questions such as: How are the bank accounts set up? How do club members pay dues? Does the club have any outstanding debt? Club Treasurer s Manual 2 Role and Responsibilities

7 Your district offers training at the district assembly, and support during the year from your assistant governor and district finance committee. What is the budget for the coming year? How was it established? How are funds allocated for club committees? What kind of accounting system is in place for bookkeeping? How are financial records kept? What paperwork needs to be filed with the club board, district, RI, and local government (e.g., for changes to bylaws, taxes)? To further prepare, attend the treasurer training sessions at your district assembly. This meeting is a good place to network with Rotarians who might be able to assist you during your term, including your assistant governor and district finance committee members. Consult with incoming and outgoing treasurers in other clubs to compare your responsibilities, reporting requirements, and accounting procedures. Refer to appendix 1 for a best practices checklist. Managing Funds When you begin your term, you will be responsible for adhering to the budget created in the previous Rotary year. This duty will involve managing and tracking incoming and outgoing funds. Incoming funds include but are not limited to: Club dues payments Donations Money raised from club activities Rotary Foundation grants Sponsorship funds Outgoing funds include but are not limited to: District and RI dues payments Charitable expenses Office supply and equipment costs Meeting expenses (e.g., facilities, meals) Promotional expenses Committee activity costs Miscellaneous fees Ensure that all collected funds and expenses are accurately documented. Provide members with receipts for their dues and donations, and record any transactions, including club purchases, in a ledger. If exceeding the budget is unavoidable, be sure to request the board s approval. An electronic accounting program will automate many of the tasks associated with your position. Consult your club s outgoing treasurer to find out which software is used, if any. If you re selecting a new program, choose one that you re comfortable with and that meets your club s needs. Club Treasurer s Manual 3 Role and Responsibilities

8 If your club collects weekly donations or fines, be sure to document them. Standard accounting practice calls for separating a club s charitable and operational funds to ensure that proceeds from fundraisers are used to support charitable activities. If fundraisers are intended to benefit specific service efforts, you may also want to create separate project accounts. Refer to Appendix 2: Sample Budget. If you are the treasurer of an e-club, this manual applies to you. Please note the separate sections for each type of club in the Standard Rotary Club Constitution. For more information, refer to What You Need to Know about Rotary E-Clubs or contact your Club and District Support representative. Collecting and Submitting Dues and Fees Rotarians are required to pay dues to their club, district (where applicable), and RI. As treasurer, it is important that you understand what you need to collect from members and what you must pay on behalf of your club. RI dues are prorated for new members depending on when they joined. For example, John Smith was admitted to his local Rotary club on 4 January. On 1 July, his club must pay five months worth of dues to RI to cover the period from February through June. Note: Dues only apply to a full month of membership. Around the World Clubs in Great Britain and Ireland have a different dues structure. Treasurers of these clubs should consult Rotary International in Great Britain and Ireland with questions about their dues. WHAT TO COLLECT Club dues Admission fees District dues RI per capita dues RI fees WHAT TO PAY District dues Semiannual dues invoice RI per capita dues New-member prorated dues RI fees: magazine costs, Council on Legislation fees Outstanding balance (if any) Club dues. Club dues can be collected on a weekly, monthly, or quarterly basis, as determined by your club, and their amount is set each year. These dues, which vary by club, generally fund operating expenses such as meetings, meals, speaker gifts, and supplies. Admission fees. Many clubs charge an admission fee for new members, as determined by the club. The admission fee is waived for transferring or former members of another club, provided they submit proof confirming their membership with their previous club. Honorary members and Rotaractors who ceased to be a member of Rotaract within the preceding two years are also exempt from the admission fee. See the Standard Rotary Club Constitution, articles 11 and 7, for more details. Club Treasurer s Manual 4 Role and Responsibilities

9 District dues. Many districts have funds for financing districtsponsored projects and supporting the local administration and development of Rotary. In these districts, each club contributes through per capita dues. The amount is approved each year at the district assembly, district conference, or presidents-elect training seminar. RI per capita dues. Twice a year, clubs are charged per capita dues, or dues for each club member. The rate for the Rotary year is US$26.50 per member per half year. 1 All dues, including prorated dues, are payable on 1 July and 1 January. (A sample invoice is included on page 7.) For each new member admitted within a semiannual period, the club must pay prorated per capita dues to Rotary International; the amount payable for each full month of membership is one-twelfth of the annual per capita dues. Per capita dues pay for RI s general operating expenses, including those for producing publications in multiple languages; providing club, district, and project support; offering training guidance and resources for incoming club leaders; and maintaining the RI website. Around the World Clubs in Australia are subject to a goods and services tax for RI, district, and club dues, as well as for their regional magazine subscriptions. RI fees. In addition to dues, Rotarians are charged for required magazine subscriptions, Council on Legislation fees, and other expenses. Payments for The Rotarian or the regional magazine Revista Rotaria should be submitted with semiannual dues. All other regional magazine subscription payments should be sent directly to the appropriate magazine editor. Note that two Rotarians residing at the same address have the option of subscribing jointly to The Rotarian. Tracking system. To track club, district, and RI dues, consider using an invoicing system. Send each member an invoice that details recent payments and any dues owed, along with additional charges for items such as meals. Include an updated balance and deadline on the invoices, and distribute them in a timely manner. Send reminders to members who have not paid on time, or notify the club secretary. Make sure all members understand the payment process and know the deadline before invoices are distributed. 1 Dues are determined by the triennial Council on Legislation. Club Treasurer s Manual 5 Role and Responsibilities

10 Sample Dues Collection and Payment Calendar (based on quarterly collection cycle) In some countries, changes to club bylaws (e.g., dues increases) must be registered with the government. July August September October November December Dues collection Collect club dues Send reminders Send invoices Collect club dues Send reminders Send invoices Dues payment Pay SAR invoice Pay district dues January February March Collect club dues Send reminders Send invoices Pay SAR invoice April May June Collect club dues Send reminders Send invoices Pay district dues Note that two Rotarians residing at the same address have the option of subscribing jointly to the official magazine. Semiannual report. RI sends a semiannual report (SAR) packet to each Rotary club secretary in late June for the July billing and in late December for the January billing. The packet consists of two parts: Club membership list based on RI records, which serves as the basis for the estimated billing. This list should be updated by the club secretary. Invoice for RI per capita and prorated dues, Council on Legislation fees, and magazine subscriptions. The treasurer is responsible for this portion and should recalculate what is owed using the SAR worksheet provided in the packet (see sample on page 7). Encourage the club secretary to keep the club membership list current through Member Access, to ensure the accuracy of your club s per capita billing. Your club s balance may be paid by credit card through Member Access by you, your club secretary, or your club president. Clubs with fewer than 10 members are required to pay for 10 members. If you do not receive the SAR packet by the end of July or January, you may print a copy from Member Access or request one by contacting data@rotary.org or your international office. Club Treasurer s Manual 6 Role and Responsibilities

11 SEMI-ANNUAL DUES INVOICE-SAMPLE METHOD OF PAYMENT (please tick) Check/Draft Remit to Local RI Office/ Fiscal Agent. Payable to ROTARY INTERNATIONAL By credit card Bank/Electronic Transfer Made to Below Bank Payment Ref: XXXXXX Acct. No: XXXX Acct. Name: ROTARY INTERNATIONAL Swift Code: XXXX Sort/IBAN: (Your bank s mailing information here) Address line 1 Address line 2 Country Invoice Number: SAR-XXXXXXXXXX Club Number: CXXXXXXXXX Club Name: Rotary Club X Issue Date: (DD-MM-YYYY) Due Date: (DD-MM-YYYY) TOTAL AMOUNT DUE: This reflects your club bank information as it appears in RI records 1 week before. XXXX.XX PLEASE DETACH ABOVE PORTION AND RETURN ORIGINAL WITH YOUR PAYMENT AND SAR MEMBERSHIP LIST Rotary International Europe and Africa Office Witikonerstrasse 15 CH-8032 Zurich Switzerland MON stands for monthly and MBR stands for member. Your regional Rotary office address will appear here. ROTARY CLUB OF X Club Number: C0000XX Club Name: Rotary Club X District: XXXX Issue Date: ( ) Due Date: ( ) NUMBER UNIT OF MEASURE DESCRPTION UNIT PRICE (YOUR CURRENCY) TOTAL 01 MON Pro-Rata Dues MON Pro-Rata Dues MBR Semi-Annual Dues MBR Council On Legislation Levy MBR The Rotarian Magazine Intl SEMI-ANNUAL DUES Amounts will be shown in USD and in your local currency. Use exchange rate current at the time of payment. y Amounts shown here are sample amounts. CLUB BALANCE DUE INCLUDING THIS INVOICE (IN USD) TOTAL AMOUNT DUE (IN YOUR CURRENCY) DETAIL OF TOTAL AMOUNT DUE AS OF 01/07/11 Member Name Admission Date Amount Billed No. of Months John Smith Jane Jones Club Treasurer s Manual 7 Role and Responsibilities

12 Through Member Access at treasurers can view Rotary Foundation and semiannual reports, and pay semiannual dues. The club president or secretary must activate your access. Submitting dues on time to the district and RI guarantees your club s membership in and good financial standing with Rotary International, as well as access to the organization s resources. Termination and Reinstatement Any club that does not pay its dues and fees to RI will be terminated and will not receive services from RI or the district. A club s membership can also be suspended or terminated if any of the club s members has misused funds from The Rotary Foundation. Termination Six months after the 1 January or 1 July deadline, clubs with unpaid per capita RI dues over US$250 will be terminated. Clubs that have not fulfilled their entire financial responsibility within 365 days of termination will lose their original charter and will not be eligible for reinstatement. Reinstatement Within 90 days of termination, the club must pay all financial obligations to RI, including a $10-per-member reinstatement fee. Clubs having fewer than 10 members will need to pay for a minimum of 10 members. More than 90 days but less than 365 days after termination, the club must pay all financial obligations to RI, pay a 10-member minimum reinstatement fee, complete a reinstatement application, and pay an additional $15-per-member application fee. The application fee is also subject to the minimum 10-member requirement. Around the World Requirements for record retention vary from country to country, with some mandating permanent retention and others specifying a number of years. Check local laws, and develop a document retention policy that complies with them. Member Termination Any member failing to pay dues within 30 days after the deadline should be notified of the amount owed and of an absolute deadline in writing by the club secretary. If the dues are not paid within 10 days of the notification date, membership may be terminated, subject to the discretion of the club s board. The board may reinstate membership upon a member s petition and payment of all debts to the club. Clubs accepting a transferring or former Rotarian must first secure a certificate from the former club confirming that person s membership, as well as verification that the member does not have any outstanding debts to the club. A prospective member cannot join a new club until all debts to the former club have been paid. Club Treasurer s Manual 8 Role and Responsibilities

13 Reporting on the State of Your Club s Finances Your duties include issuing monthly reports to your club s board, regular financial updates and a detailed annual report to club members. At board meetings, present the club s monthly expenses and income, and indicate the status of fundraising efforts and the overall budget. Though the exact nature of board reports will vary depending on club size and activity, a sample is provided in appendix 3. As treasurer, you have primary responsibility for the accuracy of your club s financial records. It is important that board and club meeting minutes list account balances and disbursements that match actual financial activity. All records should be preserved in case the club has to account for the use of funds during a specific period. Consult with local authorities on laws pertaining to document retention. Your club s financial activity should be reviewed annually by a qualified accountant. In some cases, treasurers may be responsible for filing taxes on behalf of the club. Be sure to learn your country s tax laws. There may be special requirements if your club has separate funds for scholarships or foundations, or if it is incorporated. Consult an expert in your club or community about specific tax questions. Rotary clubs in the United States and Puerto Rico are required to obtain an employer identification number (similar to an individual s Social Security number) to use when filing Form 990 with the Internal Revenue Service. Failure to do so can result in financial penalties. Working with The Rotary Foundation The Rotary Foundation (TRF) is the charitable arm of Rotary International and is supported solely by voluntary contributions from Rotarians and friends of the Foundation. Rotary Foundation grants enable Rotarians to advance world understanding, goodwill, and peace through the improvement of health, the support of education, and the alleviation of poverty. As club treasurer, your interactions with the Foundation will likely consist of submitting donations and helping to apply for and monitor grants. For specific questions regarding the Foundation, consult your club or district Rotary Foundation committee. Contributions. Contributions to the Foundation are entirely separate from dues paid to Rotary International. Both individuals and clubs may donate at any time at using a credit card, or by sending a check, money order, traveler s check, or wire transfer made payable to The Rotary Foundation (not to Rotary International). In some countries, donors may receive tax benefits. For questions, consult your international office. All contributions sent to the Foundation should be accompanied by the donor s name and a clear gift designation (such as PolioPlus or the Annual Fund). Direct donations can be made at /contribute (preferred method) or with the TRF Contribution Form (123). Contributing directly through these methods enables the Foundation to process the donation faster and issue a receipt for the donor s records and tax-reporting needs. Club Treasurer s Manual 9 Role and Responsibilities

14 If multiple donations are sent together, donors should submit a completed Multiple Donor Form (094) with their contributions. This form should indicate gift designations and include all contributors names so that each receives a tax receipt and proper recognition. Club Treasurer s Manual 10 Role and Responsibilities

15 For questions, contact the nearest international office or RI fiscal agents, located in Bangladesh, Chile, Colombia, Nigeria, Pakistan, Peru, South Africa, Sri Lanka, Thailand, and Venezuela. Around the World In India, clubs that are registered under the Foreign Contribution Regulation Act will be less likely to experience delays in receiving Rotary Foundation grants. Forward contributions received from club members to the appropriate address: 2 In the United States: The Rotary Foundation Collections Center Drive Chicago, IL In Canada: The Rotary Foundation (Canada) c/o PO Box 4090 STN A Toronto, ON M5W 0E9 Outside the United States and Canada: The international office or fiscal agent serving the clubs in your country; see the Official Directory (007) for contact information. In addition to monetary gifts, contributions can include stock, appreciated securities, life insurance policies, property, and bequests. Contact The Rotary Foundation Gift Administration Department at RI World Headquarters or your international office for assistance in transmitting these types of contributions. Contributions to The Rotary Foundation must be received by 30 June to be credited to the current Rotary year. Contributions received after 30 June will be counted in the next Rotary year. To be eligible for tax benefits, donors must ensure that the Foundation receives their contributions by the end of their country s fiscal year. Reclassifying contributions. The Rotary Foundation no longer accepts or processes gift designation corrections for contributions from prior Rotary years. Corrections are made only within 90 calendar days of the gift receipt date and within the same Rotary fiscal year. Grants. Rotary Foundation grants can help clubs finance service projects that would not otherwise be possible. If your club receives a grant, it is responsible for ensuring good stewardship of the funds and following all reporting requirements specified in the Foundation s grant guidelines. Work with your club s Rotary Foundation committee to ensure that all requirements are met. Club foundations. If your club has or plans to set up a foundation, be sure it adheres to local laws. Some countries require foundations to register with the government or follow specific rules. For example, clubs that accept contributions to their own foundations are often expected to issue tax receipts from those foundations. Consult with your local tax authority about reporting requirements. 2 The addresses above are for monetary contributions only. Please do not send correspondence or nonmonetary gifts to these addresses. Club Treasurer s Manual 11 Role and Responsibilities

16 Checks from a club foundation sent to The Rotary Foundation will be processed as donations from that foundation. If names are sent with the contributions, the individuals will receive the appropriate recognition points only; no tax receipt will be issued by The Rotary Foundation, as this is the club foundation s responsibility. Developing a Budget As a member of your club s board, you will help develop a club budget for the coming year. Before creating the budget, review the club s financial history to determine the likely sources of income and areas of expense, and meet with incoming officers to discuss their plans for the year. The income and expenses included in the budget should be broken into two parts: club operations and charitable funds. Additionally, establishing a reserve fund can help your club handle unexpected expenses; some clubs base this fund on their annual operating costs. Use the Sample Budget (appendix 2) when preparing your club s budget. The final budget must be approved by the board. Preparing Your Successor Once your successor is chosen, discuss the role so that he or she is prepared to assume office on 1 July. Review recording and reporting procedures, and share tips on budgeting and managing club funds. If practical, allow the incoming treasurer to assist with your regular responsibilities. After the last club meeting in June, turn over all funds, accounting records, and any other related materials to your successor. Resources The following resources can help you fulfill your role as club treasurer: Aimed at helping club leaders gather information about effective club operations, including links to club administration, membership, public relations, service projects, and Rotary Foundation information and to club-level resource pages. Member Access: Helps Rotarians perform Rotary business. Create an account for Member Access to view club information. Recommended Rotary Club Bylaws: Recommended policies for club finances and operations; should be adapted by clubs to meet their own needs Standard Rotary Club Constitution: The basic constitutional document for all Rotary clubs TRF Contribution Form (123) and Multiple Donor Form (094): Official Rotary Foundation forms for submitting single or multiple donations. Refer to Club Treasurer s Manual 12 Role and Responsibilities

17 RI Club and District Support or financial representative: Staff at RI World Headquarters and international offices available to answer administrative questions and direct other inquiries to appropriate staff members Contact Center: A team available to answer questions; can be reached at contact.center@rotary.org or toll-free (within USA and Canada) at ROTARY ( ). Rotarians outside North America should continue to contact their international office. District finance committee: Rotarian financial experts who supervise district funds and work closely with the district governor and area clubs Assistant governor: Rotarian appointed to assist the district governor with the administration of designated clubs Current or past club treasurers and board members: Rotarians who understand the treasurer s role and know the club s procedures and history Club Treasurer s Manual 13 Role and Responsibilities

18 2 Financial Practices During your year as treasurer, consider implementing the best practices in this chapter to help protect your club s assets and to shield you and your club from liability. Consult with the outgoing treasurer to learn which controls are already in place and which may need to be established during your term. Risk Management Risk management is the process of planning, organizing, leading, and controlling an organization s activities to minimize the adverse effects of accidental losses. As treasurer, you are in a position to minimize risk and safeguard your club s members, program participants, and assets. Consider three basic questions when planning activities and events: What can go wrong? If something goes wrong, how will I or the club respond? How will any losses be paid for? Club Treasurer s Manual 14 Financial Practices

19 If there is a significant possibility that something will go wrong, you can reduce risk by Not conducting the activity or event Modifying the activity or event to lessen the risk Preparing a plan to address any potential problems Finding another organization that will agree to participate and share the risk Though conducting business with handshakes or verbal agreements may be common, RI strongly recommends that your club use written and signed contracts. When negotiating a contract, read it thoroughly to understand what you are agreeing to. Retain legal documents for several years after the event in case a claim is made. Clubs are urged to obtain the advice of legal and insurance counsel regarding liability protection. Protection may come through the incorporation of the club (or its activities) or the purchase of liability insurance coverage. Clubs in the United States and its territories and possessions are automatically covered by general liability and directors and officers/ employment practices liability insurance through a program arranged by RI and paid for by all active U.S. clubs through the semiannual dues report. Clubs outside the United States should consider acquiring insurance if they do not already have it. See the Manual of Procedure (035) for more information. Financial Controls Financial controls help clubs function smoothly, ensure that funds are managed properly, and help protect you and your club from allegations of fund misuse. Establishing standard procedures for ongoing duties will also simplify your job as treasurer. Consider following these procedures if your club doesn t already do so: reports to board members for review to ensure accuracy before presenting them. See appendix 3 for a sample report. Include time for questions after presenting the monthly finance report to the board. Ask the club president to review all bank statements before giving them to you. Review monthly bank statements, and reconcile transactions with club records. Require more than one signature on all checks and withdrawals. Update signature requirements as officer positions and other roles change. Divide financial responsibilities. For example, appoint different club officers to reconcile bank accounts, maintain the general ledger and review financial statements, sign checks, and deposit and withdraw from accounts. Club Treasurer s Manual 15 Financial Practices

20 Ask that the chair of an event sign for charitable expenses. Require board approval for operating expenditures over a certain amount. Establish a term limit for your club s treasurer position. Create a process to ensure a smooth transition for an incoming treasurer. Stay current on local tax requirements and laws. Appoint a finance committee to provide oversight and help with succession planning. Club Treasurer s Manual 16 Financial Practices

21 Appendix 1: Best Practices Checklist for Club Treasurers Completing the items on this checklist can help you ensure transparent and professional financial practices. Monthly Collect and record dues from club members to pay RI dues (twice a year) and club and district dues (as set by the club and district). 3 Perform basic account maintenance including reconciling bank statements, making deposits, and paying bills in a timely manner. Work with club committees to ensure that their expenses are within budget. Report on the status of club finances in relation to the budget at monthly club board meetings. Annually Manage the budget developed by the previous treasurer and club board. Prepare a budget for the following year. Set up separate club bank accounts for operating and charitable expenses, and assign two signatories to each account. Make sure the club has a procedure for sending contributions to The Rotary Foundation and dues to Rotary International. Be aware of local laws regarding donated funds, and make sure those laws are followed. Register the club with the government, if required. Submit club tax documentation, if required by the local or national tax code. Have the yearly financial report reviewed by a qualified accountant who is not involved with the regular management of club funds. Make sure the club has an effective process for learning about financial best practices, and that these practices are passed on to incoming officers. Ensure that if your club has a foundation, it is managed in accordance with local laws. Review the semiannual dues invoices with your club secretary, and make sure the balance is paid by 1 July and 1 January. Review all paper and electronic files at the end of your term. Retain all necessary records for your successor, and dispose of others. 3 Dues can be collected weekly, monthly, quarterly, or semiannually, as decided by each club. Club Treasurer s Manual 17 Financial Practices

22 Appendix 2: Sample Budget Rotary Club of Budget for fiscal year beginning 1 July INCOME Budgeted income last year Actual income last year Amount over/ (under) last year Estimated income this year OPERATIONS Membership dues Admission fees 4 Income from visitors Other income Subtotal CHARITABLE Donations to club for projects Club fundraisers Other income Subtotal TOTAL INCOME 4 To be based on the estimated number of new members for the year. Club Treasurer s Manual 18 Financial Practices

23 EXPENSES Budgeted expenses last year Actual expenses last year Amount over/ (under) last year Estimated expenses this year OPERATIONS Secretary s office Badges/engraving Postage and post box Printing Stationery Phone/fax Annual report Website hosting Rent Miscellaneous supplies Other Subtotal District dues Subtotal Rotary International Dues Subscriptions Liability insurance 5 RI Convention Council on Legislation Other Subtotal Meeting expenses Club meetings: speaker gifts Club meetings: other Presidents-elect training seminar District conference District assembly Other 5 Where appropriate Subtotal Club Treasurer s Manual 19 Financial Practices

24 EXPENSES Budgeted expenses last year Actual expenses last year Amount over/ (under) last year Estimated expenses this year Committee expenses 6 Administration Club bulletin Membership Public relations Service projects The Rotary Foundation Subtotal Miscellaneous Bank or legal fees Government fees Flowers Road signs Subtotal Other operational expenses Subtotal CHARITABLE Donations to The Rotary Foundation Club projects (list each individually) Committee expenses Service projects The Rotary Foundation Other charitable expenses Subtotal TOTAL EXPENSES 6 Committee expenses for managerial or clerical purposes are categorized as operational, whereas those pertaining to service projects or activities are considered charitable. Club Treasurer s Manual 20 Financial Practices

25 Appendix 3: Sample Board Report ROTARY CLUB X Sample Balance Sheet As of 30 June 20XX Assets 30 June 20XX Cash in bank for operational purposes $3,800 Cash in bank for charitable purposes 2,795 Cash in savings 4,300 SUBTOTAL $10,895 Fixed Assets Laptop computer $2,325 LCD projector 875 Other - SUBTOTAL $3,200 Total assets $14,095 Liabilities Liabilities payable for meetings: meals $300 Liabilities payable to The Rotary Foundation 300 TOTAL LIABILITIES $600 Club equity Beginning equity $8,630 Net income for the year 4,865 ENDING EQUITY $13,495 Total liabilities and club equity $14,095 Club Treasurer s Manual 21 Financial Practices

26 ROTARY CLUB X Sample Statement of Income/Expenses For the Year Ended 30 June 20XX For the Month Ended 30 June For the Year Ended 30 June Over/(under) Over/(under) Actual Budgeted budget Actual Budgeted budget INCOME Operations Membership dues $1,300 $1,200 $100 $15,600 $14,400 $1,200 Income from visiting Rotarians $175 $167 $8 2,100 2, Admission fees SUBTOTAL $1,725 $1,367 $358 $18,200 $16,400 $1,800 Charitable Fundraisers $4,000 $800 $3,200 $10,000 $9,600 $400 Contributions received $3,600 $3,600 - Investment income $180 $ SUBTOTAL $4,316 $1,110 $3,206 $13,780 $13,320 $460 TOTAL INCOME $6,041 $2,477 $3,564 $31,980 $29,720 $2,260 EXPENSES Operations Meetings Meals $ 300 $ 292 $8 $ 3,600 $ 3,500 $ 100 Other (1) (20) SUBTOTAL $ 315 $ 308 $ 7 $ 3,780 $ 3,700 $ 80 Administrative costs Badges $ 10 $ 3 $7 $ 50 $ 35 $ 15 Banners Office supplies (3) (40) Web hosting (2) (25) SUBTOTAL $ 100 $ 78 $ 22 $ 910 $ 940 $ (30) Club committees Administration $ 80 $ 30 $ 50 $ 325 $ 360 $ (35) Membership Public Relations (2) 1,500 1,560 (60) Service Projects (10) 1,320 1,440 (120) The Rotary Foundation (10) (120) Other 3 5 (2) (35) SUBTOTAL $ 381 $ 355 $ 26 $ 3,890 $ 4,260 $ (370) Rotary International Per capita dues $ 125 $ 104 $ 21 $ 1,500 $ 1,250 $ 250 Magazine subscriptions (1) (10) Insurance (2) SUBTOTAL $ 193 $ 175 $ 18 $ 2,340 $ 2,100 $ 240 RI and District Meeting RI Convention $ 1,200 $ 1,500 $ (300) $ 1,200 $ 1,500 $ (300) District conference (25) Presidents-elect training seminar District assembly Other SUBTOTAL $ 2,095 $ 2,121 $ (26) $ 2,095 $ 2,350 $ (255) Miscellaneous Bank charges $ 5 $ 10 $ (5) $ 60 $ 120 $ (60) Flowers Gifts for retiring officers Gifts for speakers SUBTOTAL $ 165 $ 50 $ 115 $ 600 $ 600 $ - Charitable Contributions to charitable or civic activities $ 300 $ 600 $ (300) $ 7,400 $ 7,200 $ 200 Contributions to The Rotary Foundation (300) 3,700 3, Service projects (200) 2,400 2,400 0 SUBTOTAL $ 300 $ 1,100 $ (800) $ 13,500 $ 13,200 $ 300 TOTAL EXPENSES $ 3,549 $ 4,187 $ (638) $ 27,115 $ 27,150 $ (35) NET INCOME $ 2,492 $ (1,710) $ 4,202 $ 4,865 $ 2,570 $ 2,295 Club Treasurer s Manual 22 Financial Practices

27 Appendix 4: Discussion Questions for the District Assembly For District Assembly Review these questions before you attend the district assembly. Compare thoughts with outgoing and incoming club leaders. What are the major responsibilities of the treasurer in your club? How can you prepare for your term as treasurer? What potential fundraising activities will your club hold this year, and how will you be involved as treasurer? Who might be a resource to you in your club and district? How can you work with fellow club leaders and committees to manage club funds responsibly? What is one goal you will work toward in the coming year? How does this support your club s long-range goals? What problems might arise, and how could you address them? Club Treasurer s Manual 23

28 Worksheet 1: Notes For District Assembly Club Treasurer s Manual 24

29 For District Assembly Worksheet 2: Goals Use this worksheet to draft a long-range goal and annual goals for three years to reach the long-range goal. Ensure that your goals are: Shared. Those who participate in setting a goal and developing strategies to achieve that goal are committed to implementing it. Measurable. A goal should provide a tangible point to pursue. Challenging. A goal should be ambitious enough to go beyond what your club has accomplished in the past. Achievable. Rotarians should be able to accomplish the goal with the resources available. Time specific. A goal should have a deadline or timeline. Long-range goal (goal for your club three years from now): Year 1 annual goal: Year 2 annual goal: Year 3 annual goal: Club Treasurer s Manual 25

30 For District Assembly Worksheet 3: Action Plan In the space below, write one annual goal from your goals worksheet. Then, determine the action steps that need to be taken to meet this goal. Annual Goal: Action Step Who will be responsible? How long will this step take? How will progress be measured? What resources are available? Resources needed: Club Treasurer s Manual 26

31 Worksheet 4: Club Treasurer Case Studies For District Assembly Read each case study below and answer the questions. Create a plan using the case study action plan worksheet on page 30. Case Study 1 You are the new treasurer for the Rotary Club of Oakport. Your predecessor has been in the position for the last four years. The club has one bank account with US$10,000 that has been transferred to your name. You are the only name on the account. The last financial review for the club was over five years ago. Would you conduct a financial review? What changes would you implement to how the club s finances are handled? Club Treasurer s Manual 27

32 For District Assembly Case Study 2 The Rotary Club of Puerta Villa has traditionally been a small club. One member has handled the responsibilities of the secretary and treasurer positions for several years. However, this member recently left the club due to health issues. Your club is rarely open to change, but you have a lot of innovative ideas you would like to see implemented. You have shared these ideas with your club president-elect and several other members. The club president-elect is skeptical, but the club members are excited. How will you convince your club president-elect to give your ideas a chance? How could these changes affect the dynamics of your club? Case Study 3 You have reviewed the semiannual dues invoices and would like to review them with the club secretary before paying the balance by 1 January. You have tried to meet with the club secretary several times before about other items, but she has not responded to your s or phone calls. Not only is the deadline quickly approaching, but you want to make sure you have open communication between you and your club secretary. What do you do? Club Treasurer s Manual 28

33 For District Assembly Case Study 4 You have been the club treasurer for several years and this year will be your last. The club president has asked that you develop a learning process for financial best practices to pass on to future treasurers. What process for learning about financial management best practices will you recommend? What financial management practices does your club use that should continue and which should be changed? Club Treasurer s Manual 29

34 For District Assembly Case Study Action Plan Action Step Who will be responsible? How long will this step take? How will progress be measured? What resources are available? What did you learn that you can apply to your club? Club Treasurer s Manual 30

35 Worksheet 5: Notes For District Assembly Club Treasurer s Manual 31

36 Worksheet 6: Problem-solving Guide For District Assembly Use the Planning Guide for Effective Rotary Clubs and the goals worksheet from session 2 to develop your problem-solving guide. Analyze your club s goals, and think about potential challenges to achieving them. Then, offer solutions to these challenges. Goal Potential Challenge What resources are available? Administration Membership Public Relations Service Projects Rotary Foundation Other Club Treasurer s Manual 32

37 Just a Click Away! Log on to Member Access to Take courses to learn more about Rotary Update club information and download reports View your club s semiannual report (SAR) and pay dues Enter your club s annual goals and track your achievements Enter Member Access by clicking on the link in the top right corner of Rotary s home page. It s your one stop shop for all your Rotary business. One Rotary Center 1560 Sherman Avenue Evanston, IL USA EN (512)